Ryan, Artis plan Minnetonka office tower

Artis REIT and Ryan Cos. plan to build a 14-story, Class A office tower west of the Carlson Towers in Minnetonka.

The project, referred to as 801 Carlson, was announced Monday and will feature more than 317,000 square feet of office space in 11 floors above an executive lobby and indoor parking complex, according to a press release Monday from CBRE, which will oversee leasing and management of the new building.

Minneapolis-based Ryan will develop the property, located on the northwest quadrant of Interstates 394 and 494. Officials from Ryan and Artis were not immediately available for comment Monday.

The project is planned on a nine-acre site owned by the Winnipeg-based Artis REIT, which it acquired following its $75 million purchase of the adjacent 16-story 601 Carlson Tower, one-half of the highly visible Carlson Towers. That tower currently has a 99 percent occupancy rate, according to CoStar. Major tenants include Two Harbors Investment Corp., Regus and Meristem. Carlson Cos. owns the 701 Carlson Tower.

Plans for the 801 Carlson project include construction of a covered walkway that would connect the building to the 601 Carlson Tower via an 876-stall parking structure.

The built-to-suit project, which could open by the end of 2017, offers a unique opportunity for new Class A office space in the highly sought after west I-394 market and is ideal for a new corporate headquarters, CBRE Senior Vice President Brian Wasserman said Monday in a prepared statement.

“With a prestigious Carlson Parkway address, 801 Carlson is the only large block opportunity on the I-394 corridor west of I-494 and offers great branding potential for companies looking to enhance their workplace with premium outdoor space and amenities,” Wasserman said.

Ryan has not yet submitted any official development applications for the project, but representatives for Artis met with city planners about a year ago to discuss plans for the site, said Julie Wischnack, Minnetonka’s community development director.

“They had always planned for more office there,” Wischnack said, adding that a new development of that scale and use at the site is included in the city’s master development plan.

If the tower were to end up leasing to multiple tenants it would represent only the second time since the recession that a multitenant Class A office tower of that scale has been constructed in the Twin Cities — the other being the Mall of America expansion that is underway, said Matt Mullins, vice president of business development for Maxfield Research.

It’s a project that makes sense, Mullins said, because of the healthy Class A office market just west of downtown Minneapolis.

“The western submarket has the lowest vacancy rates across the metro area right now in office sector,” Mullins added.

Planned amenities to the building include more than 17,000 feet of eastern and western balconies on the fifth through 14th floors, and two outdoor terraces on the fifth and 13th floors. A future restaurant with outdoor seating is planned to wrap the southeastern corner of the parking structure.

“Providing great outdoor spaces creates a great work environment,” CBRE’s Wasserman said. “This is what people want. In Minnesota when the weather is nice, people want to be outside.”

The 801 Carlson project is planned on a nine-acre site owned by the Winnipeg-based Artis REIT, which it acquired following its $75 million purchase of the adjacent 16-story 601 Carlson Tower, one-half of the highly visible Carlson Towers. Credit: Bill Klotz

Plans for the building call for more than 317,700 square feet of office space and multiple outdoor terraces. (credit: CBRE Group)